A Company's Ending Inventory Is $450,000 Using the Perpetual FIFO $$\begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline\end{array}$$

question 75

Essay

A company's ending inventory is $450,000 using the perpetual FIFO inventory costing method.Replacement cost for the ending inventory is $420,000.Prepare the journal entry to adjust inventory.
$$\begin{array} { | l | r | r | } \hline \quad\quad\quad&\quad&\quad \\\hline \\\hline\end{array}$$

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Definitions:

Usefulness

Usefulness in a business context often refers to the degree to which information or data meets the needs of its users, enabling informed decision-making.

General Journal

A book or electronic record in accounting where transactions are entered before they are posted to individual accounts.

Cash Receipts Journal

A specialized accounting journal used to record all cash inflows or receipts into a business.

Sales Journal

A book or digital record used in accounting to record all sales transactions of a company.